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New Amendment u/s 143 (1)(a) of Income Tax Act: More clarity required for claiming Refund

With the recent amendment under Section 143 (1)(a) of the Income Tax Act, the Department has limited the scope of taxpayers in showing less income than the Form 16 which is issued. The recent escalation of the taxpayers taking credit of House Rent Allowances, Medical Allowances, Leave Travel Allowances, and also deductions under Section 80C to 80U without supporting documents, has led the department to amend the Act.

To resolve the scenario of tax evasion, the Income Tax Department is sending intimation under Section 143 (1)(a) to the taxpayers whose income as per the tax return filed is less than the income shown in Form 16 or Form 26AS.

The intimation will show the computation done by the Income Tax Department.

Due date for submission of reply

The taxpayers should reply against the intimation within a period of 30 days from the date of intimation with scanned supporting documents in the Income Tax portal, failing which the income shown in Form 16 shall be taken into account for calculation.

Steps for filing reply

Step 1:Login to https://www.incometaxindiaefiling.gov.in/ with User ID (PAN No.), Password, and DOB

Step 2:Click on E-proceedings, then to e-Assessments/Proceedings

Step 3:Click on the Prima Facie Adjustment u/s 143(1)(a)

Step 4:Click on link on Reference ID to see the notice received by you in mail

Step 5:Click on Submit button for responding to the intimation u/s 143 (1)(a)

Step 6:In response column, you can either click on “Agree for Addition” or “Disagree to Addition”

“Agree to addition” if your return was filed with unintentional errors, then the revised return needs to be filed within 15 days from the date of receipt of the intimation.

“Disagree to addition” if your Form 16 did not disclose any deductions then the relevant documents for deduction needs to be uploaded. As you click on “disagree”, a section will open where you will have to fill up the following details:

  • TAN of the employer,
  • Deductions made u/s 192,
  • Amount paid/credited by the employer
  • Income of gross receipts as per return,
  • Head of income/schedule under which reported in the return and
  • Reason for mismatch.

Step 7:Click on Submit and Acknowledgement page will appear.

Our Comment

If you have original supporting documents, then there is no problem in taking credit of exemptions/deductions.

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